Sunday, October 12, 2008

ICICI Bank sends SMS to allay fears of depositors

Mumbai - Many ICICI Bank customers received SMS messages on their mobile phones on Saturday, assuring them that their deposits with the bank are safe.

The message read that the bank is well capitalised with good liquidity. “Please do not listen to baseless rumours,” said the message, before ending with greetings for the festive season.

This was part of a campaign by the bank to allay fears of their customers, even as rumours of deposit withdrawals by account holders did the rounds.

Denies withdrawals

Ms Chanda Kochhar, Joint Managing Director and CFO, ICICI Bank, said “there is no large scale withdrawal of deposits, but customers have been querying at branches and calling in because of the fall in the share price as sentiment gets impacted.” There were rumours that deposit holders were transferring their funds to other banks.

The scrip fell by 20 per cent on the Bombay Stock Exchange on Friday, to a three-year low of Rs 364.10.

Ms Kochhar said the bank did not see any slowdown in the current and savings account, which has been the focus this year. It will raise wholesale deposits only to the extent required.

Retail defaults

On defaults in the retail segment, Ms Kochhar said there was no perceptible rise and they were at the same levels as in the last quarter. But the bank has tightened the credit parameters with regard to personal loans, given the inflation and rising interest rates, she added.

Related Stories:
ICICI Bank loses 28% during intra-day
ICICI Bank has sufficient liquidity, says RBI
A night that kept ICICI customers, officials on tenterhooks

Courtesy: thehindubusinessline.com

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